Abstract
The study aims at determining whether the tools and techniques of technical analysis are applicable to the Indian Debt Market. Technical analysis has predominantly been a domain of the equity market in India, but with the explosive growth in the debt market resulting in high volumes of trades and continuous price formations, the concepts of technical analysis can be extended to debt securities too. This study analyses yields of Government of India Securities to check whether there is a scope of forecasting security yields and prices through technical analysis tools. The analysis is done on the yields and the spread that exists between the yields of Government of India Securities. Yields are taken in place of prices because of the existence of different securities at different premium levels for the same maturity. The analysis on individual securities is performed on the 5-Year and 10-Year security yields and the results are taken valid for any other time period yields. Similarly the spread analysis is done for the 10-Year and 5-year spreads and the result is taken valid for all other spreads.
Published Version
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call